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Free advice/discussion on buy/sell of Resale flat (Part 5)

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Old 05-02-2009, 02:53 PM   #271
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hi! this is the first time posting. I'm selling my flat right now and had an offer also. Problem is the buyer wanted to pay 500 to exercise option. In my impression it is supposed to be 5000. My agent assured me that its very safe. I would like to seek some advise here. Thanx!!
It is stated in the OTP that the "maximum" is 5k, (1k Option fees, 4k Option exercise fees).

From a buyer's perspective, the deposit hopefully will be as low as possible (can be $1 + $1 = $2 total) . As long as there is an option fee and option exercise fees stated in the OTP, then it is a legally binding agreement, no buyer or seller is allow to back out of the deal anymore.

Usually of course a seller will like to collect as much as possible ( 2k-5k) so that even if the buyer backs out (just in case), there is no need to sue them etc as long as their deposit of 5k is forfeited etc.

$500 is still perfectly alright as long as they exercise the OTP immediately.
Its a perfectly legally document no matter whether the amount is $2, $500, or $5000.
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Old 06-02-2009, 01:25 AM   #272
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hi! this is the first time posting. I'm selling my flat right now and had an offer also. Problem is the buyer wanted to pay 500 to exercise option. In my impression it is supposed to be 5000. My agent assured me that its very safe. I would like to seek some advise here. Thanx!!

I paid the seller $500 only when I signed the OTP and Acceptance on the same day.
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Old 06-02-2009, 09:17 AM   #273
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Seller asked for 5K COV, I managed to got it at 3K COV.

Been to many units on that same block, all asking for 25+K COV.

Lucky me.
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Old 06-02-2009, 10:17 AM   #274
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hi Vinz!! Thanks for the assurance...decided to accept as i didn't want to drag it anymore and the buyers willing to exercise option straightaway. also now it's buyers' market. Keeping my fingers crossed that all goes well...Now is my turn to be the buyer haha..
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Old 06-02-2009, 10:20 AM   #275
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wow theran!! you are pretty lucky to get low COV...I'm also looking for flat either with low COV or at valuation..
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Old 06-02-2009, 10:22 AM   #276
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I paid the seller $500 only when I signed the OTP and Acceptance on the same day.
that's what my buyer did...sign the acceptance at the same time...i'm gonna get 1st apt in the middle of march..
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Old 06-02-2009, 11:02 AM   #277
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hi vinz!! i understand that in order to buy a resale flat must have hle approved first, what if i'm getting a bank loan? I already have principla approval from Hong Leong. Do i need to show any documents on principle approval to the sellers?
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Old 06-02-2009, 10:54 PM   #278
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Hi Vinz

Asking for help as i had asked a lot of people and i different replies.

I have a friend selling his 5 room for 390K (60K below evaluation). He is not asking for any cash. My questions are:

- Is it correct that the deposit is 10% and out of it, 5% is have to be solid cash?
- if so and i am to purchase, how much solid cash i have to stand by to take over the flat?

Thanks for the help!
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Old 09-02-2009, 10:19 AM   #279
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Hi Vinz,

I(Buyer) have already got 1st appt going on April. Seller and me have a mutual agreement to hand over the flat to me latest by July. my Seller has already paid $2000 for a flat that she wants without OTP.

scenario, her Seller's house is under deceased mother's name and the process of transfer of ownership take about a year. Not really sure about this, Vinz u have any idea?

Now my Seller wants to delay until Dec 31st to hand the flat over to me. Does the Seller has any say or authority when to hand over the keys ? I really want the flat and will not give up.

What are my options?

Can I get monies from Seller from July to Dec?
Can I rent out one room?

All these are to cover the cash that i need to top up each month which is fair. But seller objected all these suggestions.

Last edited by siriusb; 09-02-2009 at 12:45 PM..
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Old 09-02-2009, 08:43 PM   #280
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hi vinz!! i understand that in order to buy a resale flat must have hle approved first, what if i'm getting a bank loan? I already have principla approval from Hong Leong. Do i need to show any documents on principle approval to the sellers?
No need to show the in principal approval to seller unless they need the assurance from you. Anyway you cant "excercise" the option since you dont have the "letter of offer" from the bank regarding your loan, get it done asap and then exercise the option.

The max deposit you should had paid is $1k before you get your Letter of offer and exercise the OTP.
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Old 09-02-2009, 09:24 PM   #281
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I have a friend selling his 5 room for 390K (60K below evaluation). He is not asking for any cash. My questions are:

- Is it correct that the deposit is 10% and out of it, 5% is have to be solid cash?
If using HDB loan, then the full 10% can be using CPF.

If taking BANK LOAN, then the 10% is broken down into (5% complusory cash + 5% CPF/Cash)

Of course you have to standby some cash for the cash deposit to be paid to the seller when u commit to the house. Best is to prepare between $2k-$5k cash. This portion can be negoitated with the seller depending on your sincerity.

- if so and i am to purchase, how much solid cash i have to stand by to take over the flat?
If bank loan then 5% complusory cash.

If HDB loan, then maybe just around $500 or so for the legal fees.
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Old 09-02-2009, 09:40 PM   #282
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I(Buyer) have already got 1st appt going on April. Seller and me have a mutual agreement to hand over the flat to me latest by July. my Seller has already paid $2000 for a flat that she wants without OTP.

scenario, her Seller's house is under deceased mother's name and the process of transfer of ownership take about a year. Not really sure about this, Vinz u have any idea?
Depends any WILL done, adminstrator is who blah blah blah.. Will take some time to settle all these.
Now my Seller wants to delay until Dec 31st to hand the flat over to me. Does the Seller has any say or authority when to hand over the keys ? I really want the flat and will not give up.
Once u go through the 2nd appt, u become the OFFICIAL owner, seller got no way to say anything since its your house already.

It is up to you whether you want to allow them to stay or not.
If not just call police and report trepassing.

Can I get monies from Seller from July to Dec?
Can I rent out one room?
Money July to dec for wat? rental?
U can rent out one room. dont have to report to HDB.

But if u rent out the whole house, u must check whether you eligible or not before u do that,
most likely since you are a new owner, you will not be eligible.

Just note. seller can still back out of the deal now if both of you had not gone through the two HDB appts. So either you wait till its over to push them out, or u better settle everything clearly with them now and see whether you want to stop the whole process. Getting back your deposit might be a problem i think.

U dont have any agent handling this for you?

Good luck.
Vinz
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Old 10-02-2009, 08:04 AM   #283
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Depends any WILL done, adminstrator is who blah blah blah.. Will take some time to settle all these. Once u go through the 2nd appt, u become the OFFICIAL owner, seller got no way to say anything since its your house already.

It is up to you whether you want to allow them to stay or not.
If not just call police and report trepassing.

Money July to dec for wat? rental?
U can rent out one room. dont have to report to HDB.

But if u rent out the whole house, u must check whether you eligible or not before u do that,
most likely since you are a new owner, you will not be eligible.

Just note. seller can still back out of the deal now if both of you had not gone through the two HDB appts. So either you wait till its over to push them out, or u better settle everything clearly with them now and see whether you want to stop the whole process. Getting back your deposit might be a problem i think.

U dont have any agent handling this for you?

Good luck.
Vinz
Hi, Vinz

Thanks for your advice.

Heeding your advice, think i will agree to whatever the Seller wants right now.

If seller backs out, what happen to my deposit? No penalties for Seller?

Seller said that she will get a lawyer to write a letter to state that i am willing to let her hand over the flat on Dec. Is this process possible?

No agents.

Last edited by siriusb; 10-02-2009 at 08:51 AM..
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Old 10-02-2009, 10:29 AM   #284
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If seller backs out, what happen to my deposit? No penalties for Seller?
U can sue them to get back the deposit if they are the one intiatating the back out. (suing them equal to wasting time and effort)
Seller said that she will get a lawyer to write a letter to state that i am willing to let her hand over the flat on Dec. Is this process possible?

No agents.
I think because of the fact that there is no agent, each of u do not understand the legal obligation and limitation to what you can or cannot do.

The seller thought that if you don't agree to their demands, they can just back out and don't sell to you which is not how it goes.

I am not sure what type of letter the lawyer is going to draft out, if its a rental agreement for the whole unit, then u as the buyer must meets the eligiblity to rent out criterias etc (which you might not be)

Of course lawyers being lawyers, they will definitely work to protect the best interests of their client. It's up to you whether you want to sign or not. Maybe you should start seeking legal advise since you are constantly being threaten by the seller.

Last edited by vinz; 10-02-2009 at 01:17 PM..
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Old 10-02-2009, 11:49 AM   #285
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U can sue them to get back the deposit if they are the one intiatating the back out. (suing them equal to wasting time and effort)I think because of the fact that there is no agent, each of u do not understand the legal obligation and limitation to what you can or cannot do.

The seller thought that if you don't agree to their demands, they can just back out and don't sell to you which is not how it goes.

I am not sure what type of letter the lawyer is going to draft out, if its a rental agreement for the whole unit, then u as the buyer must meets the eligiblity to rent out criterias etc (which you might not be)

Of course lawyers being lawyers, they will definitely work to protect the best interests of their client. It's up to you whether you want to sign or not. Maybe you should start seeking legal advise since you are constantly being threaten by the it.

The Seller has willingly offer to return the deposit if she back out.

Not sure what the lawyer will draft, just wait and see. I will of course seek legal advise if needed.
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